infonet-economy

Organization theory and business ethics are essentially the positive and normative sides of the very same coin, reflecting on how human cooperative activities are organized
and how they ought to be organized respectively. It is therefore unfortunate that—due to the relatively impermeable manmade boundaries segregating the corresponding scholarly communities into separate...

Research evaluation is praised as the symbol of modern quality management. We claim firstly, performance evaluations in research have higher costs than normally assumed, because the evaluated persons and institutions systematically change their behavior and develop counter strategies. Moreover, intrinsic work motivation is crowded out and undesired lock-in effects take place....

An important goal of risk-adjusted capitation payments (RACPs) to competitive community-rated health plans-that may differ in coverage and/or the organisation of delivering care-is to reduce incentives for risk selection while maintaining incentives for efficiency. In most schemes, RACPs are simply based on the average observed costs in risk groups (in a prior year). We show that...

Awards are widespread in all countries and are prevalent both in the public sphere and in the private sector. This paper argues, and empirically supports, that awards serve public functions and economists should take them seriously. Using a unique cross-country data set, we suggest that awards serve as signals. Awards are more prevalent the more difficult the position and status of...

"Applied researchers often test for the difference of the variance of two investment strategies; in particular, when the investment strategies under consideration aim to implement the global minimum variance portfolio. A popular tool to this end is the F-test for the equality of variances. Unfortunately, this test is not valid when the returns are correlated, have tails heavier...

The paper first shows that financial market equilibria need not to exist if agents possess cumulative prospect theory preferences with piecewise-power value functions. This is due to the boundary behavior of the cumulative prospect theory value function, which might cause an infinite short-selling problem. But even when a nonnegativity constraint on final wealth is added, non-...

In this paper I argue that the assessment and management of corporate sustainability potentially runs the risk of severe biases due to the application of inadequate criteria. Firstly, present praxis as well as theory of corporate sustainability assessment tend to not distinguish between structural and performance related features relevant for corporate sustainability. Secondly, the...

Beyond national peculiarities, corporate governance practice is mainly centered on the protection of investors’ rights. However, this view neglects the fundamental changes of the operating conditions of business due to globalization and the weakening of regulatory frameworks. Weak or absent enforcement of contracts, increasingly unfettered negative externalities of corporate action,...